Question: Using the EViews G7 countries work file (Poolg7) containing the GDP of Canada, France, Germany, Italy, Japan, UK, and US. (a) Perform the panel unit

Using the EViews G7 countries work file (Poolg7) containing the GDP of Canada, France, Germany, Italy, Japan, UK, and US.

(a) Perform the panel unit root tests using individual effects in the deterministic variables.

(b) Check the sensitivity of these results to a user-specified lag of 1, 2, 3, and 4. Show that all tests are in agreement about the possibility of a common unit root for all series.

(c) Check the sensitivity of the results in parts (a) and (b) when both individual effects and individual linear trends are included.

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